Preston & Grover Soap Company manufactures powdered detergent. Phosphate is placed in process in the Making Department, where it is turned into granulars. The output of Making is transferred to the Packing Department, where packaging is added at the beginning of the process. On July 1, Preston & Grover Soap Company had the following inventories:

Line Item Description	Amount
Finished Goods	$5,900
Work in ProcessMaking	2,290
Work in ProcessPacking	2,990
Materials	1,300

Departmental accounts are maintained for factory overhead, which both have zero balances on July 1.

Manufacturing operations for July are summarized as follows:

Line Item Description	Amount
a. Materials purchased on account	$73,540
b. Materials requisitioned for use:
PhosphateMaking Department	$48,580
PackagingPacking Department	16,900
Indirect materialsMaking Department	1,900
Indirect materialsPacking Department	680
c. Labor used:
Direct laborMaking Department	$34,700
Direct laborPacking Department	23,420
Indirect laborMaking Department	6,720
Indirect laborPacking Department	12,050
d. Depreciation charged on fixed assets:
Making Department	$6,340
Packing Department	5,230
e. Expired prepaid factory insurance:
Making Department	$1,200
Packing Department	480
f. Applied factory overhead:
Making Department	$16,560
Packing Department	18,300
g. Production costs transferred from Making Department to Packing Department	$100,130
h. Production costs transferred from Packing Department to Finished Goods	$157,580
i. Cost of goods sold during the period	$158,160

Required:

1. Journalize the entries to record the operations, identifying each entry by letter. If an amount box does not require an entry, leave it blank.

Item	Account	Debit	Credit
a.	Accounts PayableAccounts ReceivableFactory Overhead-Making DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 2	fill in the blank 3
	Accounts PayableCashFactory Overhead-Making DepartmentMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 5	fill in the blank 6
b.	Accounts PayableCost of Goods SoldFinished GoodsMaterialsMaterials ExpenseWork in Process-Making Department	fill in the blank 8	fill in the blank 9
	Accounts PayableCost of Goods SoldFinished GoodsMaterialsMaterials ExpenseWork in Process-Packing Department	fill in the blank 11	fill in the blank 12
	Accounts PayableAccounts ReceivableCost of Goods SoldFactory Overhead-Making DepartmentFinished GoodsMaterials	fill in the blank 14	fill in the blank 15
	Accounts PayableAccounts ReceivableCost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterials	fill in the blank 17	fill in the blank 18
	Accounts PayableCost of Goods SoldFinished GoodsMaterialsMaterials ExpenseWork in Process-Packing Department	fill in the blank 20	fill in the blank 21
c.	Cost of Goods SoldFinished GoodsMaterialsWages ExpenseWages PayableWork in Process-Making Department	fill in the blank 23	fill in the blank 24
	Cost of Goods SoldFinished GoodsMaterialsWages ExpenseWages PayableWork in Process-Packing Department	fill in the blank 26	fill in the blank 27
	Accounts PayableAccounts ReceivableCashFactory Overhead-Making DepartmentFinished GoodsMaterials	fill in the blank 29	fill in the blank 30
	Accounts ReceivableCost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterialsWages Payable	fill in the blank 32	fill in the blank 33
	Cost of Goods SoldFactory Overhead-Making DepartmentFinished GoodsMaterialsWages PayableWork in Process-Making Department	fill in the blank 35	fill in the blank 36
d.	Accounts PayableAccumulated DepreciationDepreciation ExpenseFactory Overhead-Making DepartmentWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 38	fill in the blank 39
	Accounts PayableAccumulated DepreciationDepreciation ExpenseFactory Overhead-Packing DepartmentWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 41	fill in the blank 42
	Accounts PayableAccumulated DepreciationCashFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentWork in Process-Packing Department	fill in the blank 44	fill in the blank 45
e.	Factory Overhead-Making DepartmentFinished GoodsInsurance ExpenseMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 47	fill in the blank 48
	Factory Overhead-Packing DepartmentFinished GoodsInsurance ExpensePrepaid InsuranceWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 50	fill in the blank 51
	Accounts PayableFactory Overhead-Making DepartmentFinished GoodsPrepaid InsuranceWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 53	fill in the blank 54
f.	Cost of Goods SoldFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making Department	fill in the blank 56	fill in the blank 57
	Cost of Goods SoldFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Packing Department	fill in the blank 59	fill in the blank 60
	Cost of Goods SoldFactory Overhead-Making DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 62	fill in the blank 63
	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 65	fill in the blank 66
g.	Cost of Goods SoldFactory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 68	fill in the blank 69
	Factory Overhead-Making DepartmentFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 71	fill in the blank 72
h.	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 74	fill in the blank 75
	Accounts ReceivableFactory Overhead-Packing DepartmentFinished GoodsMaterialsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 77	fill in the blank 78
i.	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 80	fill in the blank 81
	Cost of Goods SoldFactory Overhead-Packing DepartmentFinished GoodsWork in Process-Making DepartmentWork in Process-Packing Department	fill in the blank 83	fill in the blank 84

2. Compute the July 31 balances of the inventory accounts.

Line Item Description	Amount
Materials	$fill in the blank 85
Work in ProcessMaking Department	$fill in the blank 86
Work in ProcessPacking Department	$fill in the blank 87
Finished Goods	$fill in the blank 88

3. Compute the July 31 balances of the factory overhead accounts. If required, use the minus sign to indicate a credit balance.

Line Item Description	Amount	Debit or Credit
Factory OverheadMaking Department	$fill in the blank 89	CreditDebit
Factory OverheadPacking Department	$fill in the blank 91	CreditDebit